What type of risk out of the following is taken care of by RTGS operational risk and settlement riskliquidity risk and market risksettlement risk and systemic risklegal risk and interest rate risk

Fx- clear is operated by RBICCILFEDAISEBI

The major risk the treasury is exposed, out of the following credit riskmarket riskoperational riskliquidity risk

Volatility of exchange rate in case of currency means large increase in selling pricelarge increase in buying pricevariablity of price, upward or downwardlarge variation of price, selling or buying

Which of the following is correct regarding position limits for treasury risk management position limits are fixed by currency wiseaggregate position is expressed in rupeesfor aggregate purpose, the currencywise net position is first calculated in USD, than converted in rupees all these are correct statements

When the bank lends in money market to other bank and the other bank is not able to make the repayment on due date, what type of the risk takes place liquidity riskdefault risksettlement risksystemic risk

Due to bankruptcy of bank B , it has failed to meet its repayment commitments towards bank A, that had lent money to the bank in a call money market. What type of risk Bank A is exposed to liquidity riskdefault risksettlement riskSystemic risk

A security dealer purchases a particular security in the expectation of rise in price, next day. The payment is to be made for this on next day. Next day the market crashes, due to which he has to borrow the funds, at any cost. In this case the settlement risk has arisenliquidity risk has translated into interest rate riskliquidity risk can get converted into settlement riskdefault in payment will create systemic risk

In addition to the liquidity risk, the risk ________is present where there is mismatch between the assets and liabilitiesinterest rate riskcounterparty riskdefault risksystemic risk

The overnight VaR of 1 year govt. security yield is 0.20% with a current yield of 7.50%. At 99% confidence level, there is ---------possibility of loss being higher that VaR 0.20%0.75%0.95%1%

The relationship between the price and the yield to maturity is-----------:PerverseDirectInversecordial

The rate of discount at which the present value equals the market price of a bond is known as thecoupon rate interest rateyield to maturitycurrent return

A bond with a face value of Rs.1000 is being sold in the market at Rs. 985. This indicates that interest rate in the market and coupon rate of the bank are equalinterest rate in the market is more than the coupon rate of the bondinterest rate in the market is less than thecoupon rate of the bondinterest rate and coupon rates have not relation with the price of bond

A bond with a face value of Rs100 is being sold in the market for Rs.98. If the coupon rate is 5%, what is the current yield of the bond 5.10%5%4.90%6%

If the change in yield of a bond is given and modified duration is also given, the percentage change in the price of the bond can be calculated as change in the yield / modified durationchange in the yield x modified durationchange in the yield + modified durationchange in the yield – modified duration

For an effective risk management of treasury operations, it is expected of banks to ensure functional segregation between zonal office head office and branchesbranches, zonal office, mid officemid office, head office, back officefront office, mid office and back office

For controlling market risk in treasury, which of the following limits are fixed :(1) counterparty exposure limit (2) pre-settlement limit (3) intra day ,overnight open position and stoploss limit (4) forex borrowing limit 1 and 3 only 2 and 4 only1 only3only

The derivative products that can be directly obtained from banks are called exchange productsover the counter productsexchange traded productscounterparty products

Which of the following statement is correct regarding the settlement of OTC and exchange traded derivatives OTC derivatives and exchange traded derivatives are mostly settled by cash OTC derivatives and exchange traded derivatives are mostly settled by physical deliveryOTC derivatives and exchange traded derivatives are mostly settled by cash on net settlement basisOTC derivatives and exchange traded derivatives are mostly settled by cash and physical delivery respectively

USD is carrying higher rate of interest while rupee is carrying lower rate of interest the rupee will be at premium and USD will be at discountthe rupee will be at discount and USD will be at premiumthe rupee and USD will be at premium the rupee and USD will be at premium

The holder of a forward contract cannot get the benefit of market rate if it is better than the contracted rate, on the date of utilization. This advantage is called :opportunity costhedging costtransfer costrisk cost

A company has raised a loan at floating interest rate and it is of the view that due to tight liquidity position, the market interest rates are likely to increase. It can go for which type of interest rate swap fixed rate to floating ratefloating rate to fixed rateone floating rate to another floating rateany of these

What is the no. of maturity buckets and what is the min. and max. period of these buckets8, min. 1 day max. 5 years8 min. 1 day max. 10 years 11 from next day to more than 5 years10, min. 1 day max. over 10 years

What is the purpose of maturity buckets measuring and monitoring the credit riskmeasuring and monitoring the credit riskmeasuring and monitoring the liquidity riskmeasuring and monitoring the market risk

Forward contracts are used to hedge the following risk reputational risklegal riskexchange rate riskoperational risk

T bills are valued at T bills are valued at acquisition costT bills are valued at book costT bills are valued at carrying costT bills are valued at repurchase cost

Under the exchange control regulations, brokers are prohibited from doing what from doing long term swapfrom doing short term swapfrom doing spot transactionfrom maintaining exchange position

A treasury bill maturing on 28/06/2015 is trading in the market on 03/07/2014 at a price of Rs. 92.8918. What is the discount rate inherent in this price 7.79257.7584 7.7834more information required

Which of the following participant in the call markets are allowed to lend as well as borrow mutual fundsbanks and primary dealersCorporatefinancial institutions

If the RBI announces that it has done repos of Rs.3000/- cr. ,what does this imply RBI has lent securities worth Rs.3000 cr. through the repo markets to the participantsRBI has reversed the repo deals of participants who entered ionto a repo with RBIRBI has inducted funds amounting to Rs.3000 cr. into the market) RBI has borrowed securities from the banking system, and lent them onward into the repo market

. A 364 days CP, maturing on28/06 2015 is trading on 17/072014, at a price of Rs.93.3375. What is the yield inherent in this price : ( No. of days taken as 346)7.5500%7.5300%7.7400%More information required